CONTRACT WITH INDIA
…our mission is to make India great by developing and promoting policies based on the principles of limited government, free markets, individual freedom and rights, equality of justice and individual responsibility…
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IN THE PRESS
INDIA NEEDS PRINCIPLES NOT POLICIES
I hate watching evening debates on Indian television. Besides the uncontrolled shouting and the lack of intelligent and respectful discussion, it is always a slugfest about policies and rarely about principles. Most Indians would be hard-pressed to identify the set of principles that guide the different political parties. Election manifestos are a worthless listing of populist programs and not compelling documents of a party’s guiding and uncompromising principles. But, if [...]
CRYPTOCURRENCIES: MONETARY FUTURE OR FAD
Imagine a world with no controls on how you exchange money with people. There are no global boundaries on where goods and services are produced and you can use a ‘global currency’ to purchase anything anywhere without the help of a third party and no transaction costs. And since the currency is not controlled by a government, you have total freedom on how and where you spend your hard-earned money [...]
MOODY’S HELPS MODI
Various Indian governments have been pushing the global credit rating agencies (CRA’s) to reexamine the country’s credit rating given its clean seventy-year credit history and recent economic growth. Last week Moody’s finally relented and raised India’s sovereign credit rating by one notch from Baa3 to Baa2. What does this mean and what is the significance of this “ upgrade”? A credit rating allows investors to assess a borrower’s ability to [...]
INDIA’S BIGGEST PROBLEM: BIG GOVERNMENT
November 8th, the “ anniversary ” of demonetization, was also a day that hazardous airborne pollutants crossed critical levels in Delhi. One event caused enormous economic damage because of needless government intervention in economic activity, and the other caused great environmental damage because of government apathy and indifference. What a poignant reminder of the dangers of big government! Big government is the source of many of India’s problems. Poverty, corruption, [...]
LAISSEZ FAIRE–LESSONS FOR INDIA’S BIG GOVERNMENT
Even Mr.Modi’s most ardent critics will acknowledge his immense enthusiasm and self-belief. But it is his misguided belief that he can somehow “fix” the economy that may be responsible for India’s current economic issues. The economy is a complex, dynamic and fast evolving ecosystem with millions of stakeholders each with their unique set of needs. Knowledge about the resources available to meet these needs is dispersed in small, localized bytes [...]
REFORMING INDIA’S WELFARE SYSTEM
Most countries provide some form of welfare assistance to those who are less fortunate. And while there might be disagreement on how to deliver such aid or even who should receive it, few dispute the principle of a basic safety net. India’s current welfare system suffers from two major inefficiencies: High bureaucratic costs associated with running these programs, and massive leakages from the system. Estimates by the Ministry of Finance [...]
ECONOMIC FREEDOM–INDIA’S PATH TO PROSPERITY
Economic freedom is the bedrock of modern capitalist societies. It is based on personal rights, voluntary exchange, and open markets. The link between economic freedom and prosperity has never been clearer. The chart below shows the results of a study of more than 150 countries over a twenty year period conducted by the US-based Heritage Foundation. The 1st and 2nd quartiles represent countries that are rated “free” or “mostly free,” and quartiles [...]
I AM A LIBERTARIAN–ARE YOU?
Libertarianism is the philosophy of liberty--of personal, political and economic freedom. The modern concept of liberty emphasizes the right of individuals to live as they choose, to speak and worship freely, to own property, to engage in commerce, and to be free from arbitrary arrest or detention. A free person is free to do as he chooses, with his own person and property, as long as he does not violate [...]
10 WAYS TO GET THE ECONOMY MOVING
There are reports that the government is contemplating a Rs. 50,000 crore stimulus to boost the economy. The notion that governments need to stimulate aggregate demand when the economy slows down was first proposed by economist John Keynes in the 1930’s. This Keynesian approach to fighting economic downturns by increasing government spending has been tried unsuccessfully in the US, Japan, and many European Union countries and is unlikely to work [...]
CAN MODI TRANSFROM INDIA
Mr. Modi came to power with the promise of being a transformational leader. But most of his recent “big bang” ideas have been anything but transformational. Transformational ideas should not be confused with governance. Building 10 Km of new roads a day, constructing toilets, providing infrastructure for power and clean water--these are all issues of governance. Citizens expect good roads, continuous power, and drinking water in return for paying [...]